KINGS GLEN APARTMENTS

WHAT IS AN EVICTION MORATORIUM?

ATLANTA, GA

The Problem

The date was March 16th, 2020. Team Quattro stepped in and completed a failing, yet lucrative, transaction for one of its friends in the industry. The project was a 36-unit property built in the late 60’s in a Class D area that was in the path of progress for Class B development. We went into the project with a decent basis knowing that about 40% of the existing tenant base would be evicted within the first two months to rid the property of crime and commence renovations. Then Covid-19 graced us with its presence and with it an unprecedented eviction moratorium. With the type of tenant that we inherited, most of that 40% stopped paying rent immediately.

The Solution

The property went into negative cash flow status for about ten months. However, we never let our commitment to our lender faulter, and came out of pocket concurrently with capital expenditures to accelerate the turn of the property while maintaining debt service coverage. Our partner, Maurice Philogene, led the way to implement a combination of cash for keys, charitable rent organizations, and police intervention to turn the tenant base.

Ultimately, we increased the average rent on the property from $700 to $900 over an 18-month period and sold for $3,500,000 over an acquisition price of $2,500,000.